Clamping down on illegal money pooling activities, capital markets regulator Securities and Exchange Board of India (SEBI) has barred three companies from raising funds from the public, with immediate effect.
Besides, the companies and their respective directors have been restrained from the securities market.
SEBI said these companies collectively garnered over Rs. 29 crore from close to 12,000 investors through issuance of securities and prima facie violated various provisions of the Companies Act.
The firms — Everlight Realcon Infrastructure Ltd, Tresty Securities Ltd and Real Vision International Ltd —— issued securities to over 50 persons each, which under the rules made it a public issue.
Hence, it would require a compulsory listing on a recognised stock exchange. Besides, it was required to file a prospectus, among others, which they failed to do.
Accordingly, SEBI, in three separate orders, prohibited these firms from mobilising any fresh funds from investors through the offer of redeemable preference shares (RPS) or any other securities to the public till further directions.
The companies and their respective directors have been barred from the capital markets as well as from issuing offer documents, advertisement for soliciting money from the public for the issue of securities, till further directions. Further, the SEBI order has asked these companies and their directors not to divert any funds raised from public at large.
These companies have also been asked to provide a full inventory of all its assets and properties as well as furnish complete and relevant information sought by SEBI.
These directions would come into force with immediate effect.
According to SEBI, Real Vision International raked in Rs 21.19 crore by allotting RPS to 11,832 people between 2010-11 and 2012-13, Everlight Realcon Infrastructure mobilised Rs 71.64 lakh by issuing RPS to 131 investors during 2011-12 to 2013-14 and Tresty Securities garnered Rs 14.43 lakh from 65 persons through the issuance of RPS.
